Extra U.S. aid to Jordan will ease impact of Iraqi war
The Jerusalem Post

27 March 2003

America's grant of US$1.1 billion in extra aid to Jordan will help it to maintain
normal expenditure on education, health care and other essential services in
spite of the fallout from the war in Iraq, the U.S. Embassy said Wednesday.

U.S. President George W. Bush asked Congress on Tuesday to approve the additional
aid to Jordan, which is already scheduled to receive US$250 million in economic
assistance and US$198 million in military aid.

In a statement, the embassy said Bush made the request "in recognition
of the impact to the Jordanian economy that might result from the military conflict
in Iraq."

Jordan says the war in Iraq will cost it more than US$1 billion a year in lost
trade and higher oil costs. Jordan has until now received all of its daily requirement
of 90,000 barrels of oil from its eastern neighbor at subsidized prices.

The oil from Iraq stopped on March 20, the first day of the U.S.-led war on
Iraq. Saudi Arabia and other Arab states have promised to replace the Iraqi
oil flow, but Jordanian energy officials say the kingdom will probably have
to pay market prices for the new supply.

Iraq was also a substantial trading partner of Jordan, taking an estimated
US$700 million worth of Jordanian exports.